Saltık 
BlackRock has made a significant change to its Bitcoin exchange-traded fund (ETF), requesting that Coinbase complete Bitcoin withdrawal transactions within 12 hours. The filing with the US Securities and Exchange Commission (SEC) on September 16 states that Bitcoin assets stored in Coinbase’s ETF must be withdrawn quickly.
BlackRock Requests a Withdrawal from Coinbase
BlackRock made this change following concerns among investors about Coinbase’s on-chain reconciliation practices. In particular, investors are demanding that Coinbase provide on-chain evidence for Bitcoin assets purchased on behalf of Bitcoin ETFs.
Coinbase is the custodian of the majority of spot Bitcoin ETFs approved in the United States, as well as the majority of Ethereum ETFs. However, Bitcoin prices have stagnated over the past three months, increasing investors’ speculation that Coinbase is using Bitcoin undertaking notes (IOUs) instead of “real” Bitcoin. This may have caused the Bitcoin price to remain under pressure.
Might interest you: BlackRock’s Report: Bitcoin Shields Against Risks
Coinbase CEO Brian Armstrong, in a statement to ease investor concerns, stated that all ETF transactions take place on-chain. Armstrong emphasized that Coinbase is regularly audited by Deloitte and that the addresses of large institutional clients are kept private.
This development means that major institutional investors such as BlackRock will continue to closely monitor Bitcoin’s price and its impact on the market as demand for Bitcoin ETFs increases.
You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.